As it has been already admitted in the earlier writings CFD trading is very popular way of trading nowadays and the majority of people have the strong wish to try their trading in CFDs. Any specialist in this sphere will tell you that CFD negotiating is a very complex thing to try and in order to do it successfully you should possess enough knowledge and some trading practice before you decide to be seriously involved in the procedure of CFD. Below you can find out some very important points that it is suggested for you to keep in mind, because they may help you much in CFD trading procedure.

The first very point you should be aware of is the necessity to verify your CFD negotiating type of the account together with your CFD broker. You should remember that it is considered as a very important thing, as when you have your status of the private customer you can be assured in that you will receive the best services and you will not deal with such hidden costs as the extra commissions. If you are a private consumer you will have more compensation and also improve your arbitration opportunities. It does not play the big role whether you are a new seller or maybe you have the rich experience. In any situation you have all chances to be the private customer. There are many professionals who do not suggest accepting the intermediate classification. If you accept your intermediate classification you will be defined as an experienced seller and your CFD broker will not think it is necessary to supply you with the best services and facilities.

The other point to keep in mind is that you should be wary about the deals that are free from tax. Before you consider this or that deal you should also be ensured in that you know definitely how much CFD trading deals cost and be attentive when you are proposed to have the business with tax-free deals. Do not trust in what CFD broker says to you, as first of all, you should verify what commission-free deals include and how secured they are.

CFD trading is a very good possibility for you to earn the cash you dream about. But you should also be aware of that you are able to make much money only when you remain in CFD trading process during the very long time period. Sort-term positions may bring you sums of cash, but they will be not the amounts you wanted. It is your full right to choose the kind of trading and to make your positions. It depends on your goals and aims. If you know the above mentioned points and stick to them you should be ensured in your CFD negotiating wealth.

Bloggers who are trying to find more info about the niche of CFD trading, then please make sure to visit the website that is mentioned right in this paragraph.

Your biggest enemy as an incipient Day Trader day trading is Fear. You will probably never entirely get over it, but you can reduce it by becoming aware of several factors that contribute to what I call “Trader’s Fear”. You need to consider these “Trader’s Fear” factors before you launch into Day Trading :

Fear Factor Number One: Being Uncomfortable With The Market.

If you want to make as much money possible as a Day Trader learn day trading, you need to squarely face a few issues, including the actual comfort you personally have with trading in the Stock Market. If you are terrified of making a mistake, that fear will paralyze you and cause you to make the same mistakes over and over, for example pulling out when you should stay, trading prematurely (or long after the Indicators signaled you should have entered a trade) — just to name a few. If you are scared the entire time you are in a trade, you won’t be able to move past the problems that will dog you, and you won’t be able to “pull yourself together” when you absolutely need to.

Fear Factor Number Two: Going Cheap on A Broker.

Choose an experienced broker. It’s tempting to go with a broker that charges a low commission, but many times these individuals have little or no experience and they won’t be effective in recommending stock or helping you foresee unexpected problems. In my own case, as an example, I went with a broker who was “new to the game”, having just entered Stock Market brokering from a career in High Tech. He recommended some high risk Biotech companies that lost most of the money I invested. You need to go with an experienced broker, not a cheap one.

Fear Factor Number Three: Not Enough Practice Trading.

Spend time in the practice account before turning to real transactions. Don’t rush into “live trading” until you have spent a great deal of time practicing with the broker’s “funny money”. Practice accounts have an upside and a downside. On the one hand they help you see the impact of changes in the market on your profits and losses. You can make a few risky decisions in the knowledge that you are not really risking your own, real money. The downside is that you make risky decisions that you won’t make with your own money, and practice trading won’t really reflect what you do when you trade in a “live” account. The “Trader’s Fear” factor isn’t with the demo account the way it will be when you convert over to a “live” account — and that can mean all the difference in the world. Still, you can determine your most comfortable investing style with a practice account, which will be helpful.

Fear Factor Number Four: Not Knowing Enough About The Companies You Are Investing In.

Once again, had I known that Biotech stock was as risky as it was, I wouldn’t have touched it. Do your homework. Find out exactly who owns the company, how it is doing financially, what economic factors may influence it, and what Market Gurus are saying about it. Find good sources day trading basics of information and read as much as you can before you “place your bet”. Check out financial reports you can purchase online. This information will always lag behind events, however, so find sources that are as “real time” as possible.

Fear Factor Number Five: Launching Too Soon.

Take your time getting started. As long as you feel like you are leaping off a cliff, the anxiety will be much higher. Take your time with research, with dummy trading, with getting to know the Market in general. Read what advisers and market gurus have to say about how to trade with confidence. If you are careful about how you get started, things are going to go much smoother and you will have fewer problems. Never just dash into the process and hope for the best; prepare yourself as best you can, but also keep in mind that at some point in time you have to actually start. You can’t let fear keep you from doing THAT, either.

Fear Factor Number Six: Failure To Learn To Live With Risk

Day Trading is living with risk. Get used to it. Learn to love it and thrive on it. At the same time, learn how to reduce it. Learn how much money you can risk in a trade, and prepare yourself to lose it all. This means you don’t mortgage your house, or bet your retirement. Never risk more than you can lose, and be prepared to lose it.

Reducing fear as a Day Trader requires that you have a basic foundation in the Market: the manner in which it operates, how it is going to influence your trades, and how to make a profit. Avoiding the market until you decide to start Day Trading might make you anxious and nervous while you figure out what your best approach will be, but taking the time to reduce these “Trader’s Fear” factors is vital.

Above all, don’t rush it. Take your time to make sound investment decisions and ensure that you are on your way toward ultimate success. Some people can do this in a short period of time, but don’t let that stampede you. There is no set time for you to become comfortable with the market — and become a successful Day Trader.

Buying and selling stocks can be a great means of income. Trading stocks could be a full-time career choice, or just an opportunity for extra cash. No matter which a trader chooses, both fields require special attention. Day trading websites can help with this chore. With as much as they provide, decisions will still be up to the trader in the end.

After the trader has a concept of trading, their personal method will need to be decided upon. Some of these sites specialize in specific trading techiques. An example of this would be a site that only specializes in swing trades.

Now that the trader is comfortable in their style, it is time to pick stocks. These online sources generally list a variety of movers throughout the trading day. In addition to this, the website admin typically sends out email alerts of specific stocks to watch that day. Another excellent opportunity is finding stocks in the day trading chat room.

Advice from real-time traders is easy to access when using a day trading chat room. Traders discuss their personal trading tactics, and even how it works for them. Information on good investments is only a click away through a day trading chat room. Taking part in such a lucrative tool is likely to increase success for an amateur trader.

Day trading can be the answer to more capital in your lifestyle. Introducing it as your sole income is always an option as well. Remember that trading does not have to be done alone, there are many options to reduce the stress.

WebIRESS is one of the best prevalent trading platforms for DMA CFDs in Australia and is offered by many of the main on-line brokers. WebIRESS is common in the equity trading community as well as with DMA CFD traders. Traders using WebIRESS are able to buy and sell both stocks and DMA CFDs using exactly the same WebIRESS login.

Most CFD and on-line share brokers in Australia are able to provide a WebIRESS demo for potential traders to download any try prior to opening a real trading account. It is very important to note that WebIRESS demo accounts do not permit you to place orders or view your portfolio, the reason for this is that WebIRESS needs to be linked to an IRESS Order System (IOS) in order to function and place orders, demo accounts are usually not linked to an IOS.

As WebIRESS is an internet-based trading platform demo accounts are accessed on-line using your web browser, however it is very important note that WebIRESS needs Java to be installed on your PC so that you can operate correctly. When initially installing WebIRESS you’ll be prompted to install the most current version of Java. It is critical that the most current version be installed as your webIRESS demo might not function properly on older versions of Java.

Upon first glance your WebIRESS demo will appear rather basic with the workspace layout being separated into four frames, however when switching to the multiple document interface (MDI) mode you will instantly realise the power of the WebIRESS desktop interface. In the MDI mode it is possible to freely move windows across numerous displays and easily produce customisable workspace tabs.

When fist logging into your WebIRESS demo you will see that it will likely have delayed market quotes and only one level of depth, this is common. After opening a real trading account you will be given the option to subscribe to live data at a price of approximately $38.50 for ASX data, upon subscription you’ll have complete access to live market data, course of sales and full market depth.

Among the list of fantastic features of webIRESS is the market map. The market map is basically a heat map of the market providing a graphic representation of the market movement of stocks in each of the sectors in real-time. The size of the squares in the map symbolize the market capitalisation of each of the stocks and the shades of red or green provide an illustration of just how much the stock has moved up or down. The market map is fantastic for traders searching for a fast snapshot of the movement of stocks in relation to their sector and the general market.

Once you have spent time navigating the menu items, building watch lists and customising a layout it’s advisable to explore the charting functionality of your WebIRESS demo and become familiar with the chart indicators and layouts and ways to adapt them to fit your trading techniques.

As soon as you determine whether or not WebIRESS is the best trading platform you will need to factor its price into your trading budget, most brokers and CFD providers offer the WebIRESS platform at a price of somewhere between $55 to $88. When combined with ASX data fees your total monthly fee will come to approximately $95 to $125. If you are a frequent trader you will likely discover that your broker or CFD provider will cover the WebIRESS cost on your behalf, on the other hand if you are not a frequent trader it’s important for you to determine whether or not the additional features available on the WebIRESS platform are worth paying for as there’s lots of free CFD platforms obtainable that offer similar features.

Thursday, August 18, 2011
Stocks’ Wave 5 Down Underway; Euro a Mess

Using my Elliott Wave Principle fundamentals can give us an edge on predicting future movement of the financial markets.

Simply put, the reversal signs I noted in yesterday’s post were indeed the kickoff to Minor wave 5 down. New lows are just around the corner. Internals today were a blood bath as you might have imagined. 97.3% of NYSE volume was to the downside and almost all S&P stocks were down on the day. But volume was not nearly as large as it was in the previous down move. Today we saw only 1.6 billion shares traded instead of the 2.5 billion area we saw before. This further gives us evidence that a 5th wave is underway since EWP states that 5th waves are often accompanied with diverging momentum relative to the previous 3rd wave at the same degree. So the previous 3rd wave at the same degree had volume in the 2.5 billion range, and now the 5th wave is in the 1.5 billion range. Typical behavior of 3rd and 5th waves which helps strengthen the top wave count.

Speaking of wave counts, let’s get some posted. Normally I just like to get to the bottom line and not get too tied up with the details that really aren’t relavent at that moment. The bottom line was that a 3rd, 4th and 5th wave have been on our plates and the focus should be on that current up/down movement, not what the bigger picture wave counts might be which will onlly cloud the issue. In general, up until now, all the wave counts virtually would result in the same up/down movements, so I just focused on that fact. But now that we’re entering a time where the wave count options will start to separate from each other, I want to post the counts I’m tracking closely to get a better idea of where to look in the future.

ELLIOTT WAVE PRINCIPLE COUNT

Above is the preferred count I’m tracking now. It’s a little different than what I’ve been posting the past few days because Minor waves 1 and 2 have move back one wave. The internal strength of Minor wave 3 compared to the current Minor wave 5 make this count the most viable in my view. New lows in the major indices should be just around the corner, but once those lows are achieved, perhaps in only some of the indices, there will be a very sharp and long Intermediate wave (2) rally. I would not want to be caught holding short during that rally so I’m choosing to begin the exit of my short positions now. I’ll then reshort as the big Intermediate wave (2) rally gets underway as long as it has the characteristics of a countertrend rally (corrective).

In a perfect world, this count would be preferred. The reason is because Minor wave 3 should subdivide into a little nicer 5 wave move, giving it the “right look” in EWP’s guidelines. But we don’t live in a perfect world, and the market rarely gives us perfect EWP form. In my opinion, the move down has been so great and the profits so large that ignoring the first count I posted and trading based on this count would just be greedy. Even if this count here is correct, the market is going to make one more low anyway and getting out at that point to avoid being caught short in Intermediate wave 2′s monster rally is well worth it in my view. Trading is all about risk/reward in my view, not trying to squeeze out every last drop of profits out every move even when a larger countermove is imminent.

Lastly, there is a less bearish option as seen above. Instead of an impulsive decline downward as I counted in the two above charts, here we have an Intermediate (A)(B)(C) decline that will end with a new low soon. Wave Cs are 3rd waves and are equally destructive according to EWP, so we can’t say the past few weeks of heavy selling can only be a wave 3. It can also be a C wave. This count will keep me honest on the next big rally phase. I have to make sure that I analyze the rally carefully in order to determine if it’s characteristic of a new bull run, or if it’s just part of a correction. Making that determination will be key in placing big bets on the next big move the market makes.

I know this is a lot to digest and can be a bit confusing to those not EWP savvy. This is why I usually just focus on the bottom line and don’t get too tangled in the details. The bottom line though for the short term is that regardless of which count is correct, notice that in the short term all the counts agree that the markets are headed to new lows soon and will rally soon after that. From there we can better determine which of the above counts we should eliminate depending on the size, structure and strength of the impending rally.

The euro is a mess and according to EWP, this is clearly a correction within a larger bullish move. The euro’s failure to collapse with stocks also strengthens the thesis that this is just a correction within a larger bull move. The problem is that it can’t make a new swing high on a daily basis, making it hard to get long right now. But overall, I think that it’s currently in a 4th or B wave within a larger upward correction. Once the 5th or C wave rally is complete, which will probably be in conjunction with stocks’ Intermediate wave (2) rally, then the euro should fall hard along with stocks’ Intermediate wave (3). But right now, I’m avoiding trading the euro.

PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.

There is no shock hearing large sums can be made when trading. However, circulating more frequently are the stories of traumatic losses. Let it be understood that both are very possible. To protect you career against failure, a trader must put forth a lot of time, patience, and determination. Within these sentences will be a great help that can be found with little work.

Ever consider a trading source online? Many areas that new, or experienced, traders are struggling in can be lessened through one of these sites. There are a number to choose from, and all can be found through, of course, the internet. The majority will require a monthly charge, however generally a free trial is offered.

Finding stock picks is easy when a member. This is beneficial for amateurs, or to anyone looking to expand their portfolio or even recover from a previous loss. Another fantastic feature is the day trading chat room. Can you imagine what a room full of traders would talk about? You can be in on that conversation when engaging in a site. Every trader is still learning, no matter what length of time they have been trading. Talking with other experienced investors can give you a missing piece.

The number of traders who use trading sites may come as a shock. This decision can improve your production almost instantly. Having the ability to find potential stocks all in one place, and debate them with a day trading chat room can simplify your overall process.

People who are searching through the web for info about the niche of hostgator coupon, visit the page that is mentioned in this line.

So, you are planning to make money by CFD Trading. Well, this is not one of those never-become-reality dreams. One can easily earn enough money here and that too easily. One item which is really required in case you are searching for some profits through contract for difference is great knowledge about the market. With sound knowledge about the system you are able to create a good strategy for yourself and then can start trading CFDs. There is risk included and hence it is necessary to have your plan in place. So, for the purpose to create a good strategy one should do some hard work. One must be prepared to face problems when you are in to a risk scheme and that too which includes money.

To begin the procedure of earning money through contract for difference trading, you must have a prime view about what you are planning to do for the purpose to achieve your aim. Once again, it is vital to mention here that great market knowledge is important. Get to know more about the market trends, performance of various sectors, features of different companies, follow the news around CFD and market details to start with. One aspect which should always be kept in mind is that market study does not mean everything based on price. One should not neglect other factors and variables present in the market. It is important to follow the track record or the trend for the purpose to learn the possible outcomes. Taking into consideration all these things in mind, one can surely reach a positive or a benefit stage. It is always essential to be attentive as you are actually putting your hard earned money on stake. One should begin with spare money and with the money made from it should be invested in the market.

With some small strategies mixed in to a big strategy, one is able to reach the aim called benefit. So, if you are a new investor you need to take care of below mentioned items:

1. Never make a resolution in rush. It is always better to learn the market first and get to know more about the ground and fundamentals of the market before putting money on stake.

2. Try and work under a person more experienced initially to understand the secrets of earning through contract for difference rather than starting off all alone. If you start off without any guidance you might be soon in losses. It is important to earn first to make a stand in the market.

3. Once, you are in a position wherein you understand the market scenario in proper manner, start putting excess or spare finances on stake. One should use the money which is lost will not influence a lot his or her monthly budget.

Day trading contracts for difference (CFDs), shares or indices, has become common in recent times. The attraction of day trading has been mostly caused by many advertisements for money making methods, seminars and educational courses that guarantee overnight success. Many of these courses also profess to be low risk and require only a small capital outlay. The fact is, trading is hard work, the longer you devote to developing a successful trading system the more likely it is that you will do well, nevertheless you ought to be aware that success won’t come overnight or without losses.

Once you’ve put in the time and effort to put together a trading strategy only then should you consider becoming a professional day trader. Day trading provides a lot of lifestyle advantages including a chance to be your own boss, you no longer need to go into work and take orders from your boss. However, you mustn’t take this freedom for granted, trading should be viewed as a business and you are required to be discipline in order to do well. If you do not apply discipline to your trading you shouldn’t think about trading as a profession.

There are significant lifestyle advantages that come with day trading, being you own boss makes it possible for you to chose your working hours and even your office, it is possible to work from home or whilst on holidays. Getting into day trading requires little capital expenditure as all a Day trader needs is a trading account, computer and internet access. Before you run out and buy yourself a new computer bear in mind that you need to also have sufficient funds in your trading account, a common mistake day traders make is that they are under capitalized when they first start. It is best to start with around $20,000 – $30,000 this will allow you to expand and refine your trading system and allow you to recover from errors.

The time you spend analyzing and watching the markets will depend the trading system that you choose to adopt. Day trading and scalping needs constant monitoring of the market as day traders look to profit from small price movements, whilst swing trading requires that trades be held open for 2-3 days, meaning that you do not have to spend as a great deal of time in front of the computer.

Even though trading professionally from home allows you to select your own working hours, it’s very important to be aware of key times throughout the day, in the stock market they are the opening and closing phases of the market, in Australia this is 10am and 4pm. You must also be conscious of the movements of major international markets and how they influence the local market that you are trading and individual announcements relating CFDs over the company’s that you’re trading.

Don’t believe the promises of guaranteed income, develop and back test your own trading methods that suit your chosen lifestyle and the time you have to spend on your trading. Trade your strategy and refine it as needed, bear in mind you will make mistakes but do not be disillusioned this is common, simply recognize where you went wrong and refine your strategy. Once you have developed a strategy that works for you and suits your way of life you will be rewarded with the benefits that being a day trader has.

To learn about trading Contracts for Difference from home for a living make sure you read this free CFD trading guide. There are a variety of CFD providers that can assist you in getting started, but be sure to select a CFD provider that is able to offer you a reliable trading platform.

We are living in one of the worst economies in the last 80 years in the United States of America. We are already into our second year of one of the worst recessions in the last 50 years and it looks like we are no way near the end. In fact with all of the bad economic data from just the first 3 weeks of this new year we have heard announced over 150,000 jobs layed off by some major corporations (Caterpillar, Sprint-Nextel, Microsoft, IBM, etc) and that number will definitely drive up our overall unemployment figure.

Today, January 27th, we just had the lowest Consumer Confidence Number in the 42 year history of the statistic. The Dow Jones is down 9 Percent this year alone and we were down nearly 40 Percent last year. There is no sign that we have hit the bottom yet. Buy and Hold investing is currently dead. But there is still money to be made in this economy. In fact, this is the time when the new Barons of Wall Street are being made. It seems the old guard are using the old rules and are getting slammed. That’s what happens when you build your empire on a house of cards that you had the Federal Government change laws to your advantage and a bubble of 40 to 1 leverage and undisclosed risk is insured against.

One way to make quick and dynamic profit is to Buy Penny Stocks. In this day and age when every stock seems to make a 10% move in a day at least once a month and the market as a whole is heading down you can still make unbelievable money in Penny Stocks. It is common for these stocks to DOUBLE OVERNIGHT. Penny Stocks have been considered high risk investments in the past but when the whole stock market is now a high risk investment, they provide remarkable upside. Like I said earlier, you can not buy and hold onto your investment and expect to make money.

If you had bought stocks 10 years ago they are currently worth less than they were then. There isn’t a single sector that is guaranteed to have growth over the next 10 years as I write this today. In fact there are several big name corporations that won’t be around by the end of this year. You don’t want to get stuck owning one of those stocks do you? You should Buy Penny Stocks.

You must be a trader if you expect to make any money today. Quick profits and take them when you get them. If you buy a stock and it gets you 10% or 15% profit, cash out, because the past 4 months it has reversed itself and taken away all of you profit just as fast. But with penny stocks you can get a 100% profit and do it in a matter of days, or just one day. A penny stock is defined as any stock which is currently trading for less than five dollars per share.

The funny thing or sad if you really think about it is that there are at least 4 stocks on the Dow trading below five dollars a share. In the now so distant past they would have been removed and replaced but there is so much uncertainty the Dow hasn’t made a move yet. Probably because they don’t want to add a corporation only to have to take them out a month later because the new corporation fell below five dollars a share. These are truly historic times.

How can penny stocks be profitable, you ask? The answer is that they can be extremely profitable because of a principle called leverage. When the price of a stock is low you are able to buy many shares of that stock for very little money. Also, a stock which is priced at 50 cents can easily double overnight. This can result in huge profits if you pick the right stocks to invest in.

It’s true it is very tricky to know which stocks are going to grow in value in the near future. Just as the value of a penny stock can double overnight, it can just as easily decrease by half overnight as well. I have found that the best way to pick which penny stocks to invest in is to let a piece of software or a stock trading robot analyze the stocks for me and choose the ones most likely to increase in value.

A stock trading robot is able to perform complex mathematical calculations and trend analysis, as well as examine hundreds of stocks in a short amount of time. A human could never analyze stocks as quickly or accurately as a computer, and this is why you will be able to see much bigger profits if you decide to invest in some stock analysis software.

This is your opportunity to take your investments to the next level.  You are ignoring great opportunities as we sit here.  This is the time of growth for smaller companies that will be the titans of tomorrow.  Larger corporations are buying up these little companies everyday to add value to their companies and also to grow their future earnings.  Penny Stocks are the prime real estate of the larger corporations that are trying to find the next great thing.  You need to get in on these opportunities now.  But How?

Well, do what I do.  Use a resource called Doubling Stocks that uses the most sophisticated software available to scan through 1000′s of companies and look at their historical data and keep up to date on the current news.  Doubling Stocks has a tremendous track record and you can even try out their newsletter for a free trial.  Give them a try, you have nothing to lose.

Marl the Stock Picking Robot

Feed Shark
buy penny stocks
recession
stock market
investing
bailout
stimilus package
Turbo Tagger

Buy & Hold Investing Is Dead!

There, I said it.  It hurts to say it but look at the evidence over the past 2 months.  If you invested in the Stock Market in 1997 your stock is worth the same as it was then.  Is that what you call investing.  You could have left it under the mattress and ended up with the same thing, except you wouldn’t have fooled yourself into thinking that it was worth more 2 years ago and you wouldn’t be hurting today realizing that it is worth the same, or less if you count inflation over the 10 year period.  Hopefully we won’t see deflation.

Stock Market Investing really looks like it may be heading back to the 1930′s.  Not old enough to remember the 1930′s, me neither.  But I can read and watch history videos on the internet and on the history channel.  Also PBS’ Nova ran a great program last week called “The Great Depression”.  I thought that I had read enough about the subject but I learned a couple of things.  One, that the stock market was completely rigged by a handful of big shots.  Two, that once J.P. Morgan the man stopped a sell-off all buy himself by walking across the street into the board of trade and yelling that he was buying.  That was all that it took for the mass hysteria to subside.  Three, 5 months later no one man could stop the collapse, because several tried, including J.P. himself again.

Another thing that I never realized was that it took 25 years, yes I said TWENTY FIVE YEARS for the market to return to the highs of 1930′s.  That means it was way after World War 2 and Elvis Presley.  Our economic system was brought to its knees and it took a victory over Germany and the subsequent raiding of Germany’s scientists and (innovations) patents to turn the United States of America into the financial leader of the world.  Who knows how long it would have taken to get the market back without that war and infusion of talent and expertise.

I have felt an uneasiness about our economic situation for years.  I couldn’t understand how people were buying all of these big houses and complete neighborhoods were popping up everywhere I turned.  It didn’t make sense to me and I guess we all now know the reason why.  It didn’t make sense to loan people money on a house they couldn’t afford by banks and investment houses that didn’t have the capital to cover the mortgage if the homeowner defaulted. And then to make it even worse the Insurance Companies were brought in to insure the risk without a clue to what they were insuring or where or who.  Crazy.  It took 10 years or so but the roosters came home at last, and our financial empire is going down with it.

If you study the market or watch the programs on TV, my favorite is Closing Bell on Bloomberg and Fast Money on CNBC.  Fast Money is excellent and lively and full of ideas daily.  It is on at 5:00 pm Eastern time.  Anyway, you now can see that the market is not following any fundamentals anymore.  Strong balance sheets or cash on hand or a great CEO or Warren Buffett buying your stock and telling everyone that can listen to buy and hold, nothing has stopped the collapse.  What I didn’t mention about that Nova “The Great Depression” is that quite a few of those big shots lost everything they owned.  J.P. Morgan didn’t, but almost.  I’m afraid that Warren Buffett might be falling into this category himself now.  I know he is the most successful trader in our generation, but all of his success came in a different climate than what we have now.

Mr. Buffett bought shares of Goldman Sachs 2 months ago and has lost 50% of his value.  This has never happened to Mr. Buffett and I bet he is starting to feel like the rest of us on a trade we’ve made that is moving in the wrong direction.  Except he spent $5 Billion dollars!!! This isn’t the only thing that he is losing money on and if you have been paying attention you may have noticed that today 13 of the 30 Dow Jones Industrials hit their 52 week low.  If you are into technical trading you know that that is a really bad sign.  The bottoms were blown through today also which means now we must be searching for a new bottom for the markets, all three of them, the DOW, the NASDAQ, and the S & P 500.  We are in a free fall with no idea where we will land.

So when I say Buy and Hold Investing is dead, I’m just looking at the situation through clear glasses, not the rosey ones that I usually use.  When fundamentals doesn’t matter and confidence induced allegories doesn’t matter and the Federal Reserve backing your assets doesn’t matter, BUY AND HOLD IS DEAD.  But there is a way to take advantage of this market still.  Its in the DOLLAR.

But before I get ahead of myself I think that I should introduce you to probably one of the few people who had this figured out years ago, in fact, he has written 2 books on the subject and if you google his name and go to youtube you will find massive video evidence even as early as two years ago and as late as April and May of this year of him predicting the housing collapse and then the investment bank collapse and next in line is our entire financial system.  Unfortunately, he has been right so far about many things.  His name is Peter Schiff.  He was on Fast Money today and he blew the doors off of the myths going around about this being a recession that lasts 6 to 9 months.  He called the recession a year ago and he also said gold would hit $1000 an ounce, which it did this summer.  He is now predicting Gold to hit $2000 an ounce by next year some time and possibly going much higher when the Dollar collapses.

Hopefully he is wrong, because if he is right our way of living is going to change on a drastic level.  Depending on your age, we may be about to have to go through what our Grandparents or Great-Grandparents went through in the 1930′s.  We have let our country go from being the largest producer of goods to being the largest consumer of goods.  The only thing we make are cars, tractors, weapons and corn and wheat.  We buy 1000 times more than we sell and we now as a country are in debt to the tune of $10 TRILLION DOLLARS.  Between Reagonomics and the past 8 years of Bushonomics with a little of Clintonomics thrown in we have destroyed our manufacturing base and now depend on the rest of the world to make things.

Peter makes the point that the person who makes things can sell them, the person who just manages money and fools people into thinking it is worth more than it is when it is not backed by anything (like Gold) is in a whole lot of trouble when the bubbles burst.  As I write this today the toy company Mattel, who makes Hot Wheels, is worth more money than General Motors, who make actual cars.  How can this be possible?  Only in an imaginary universe of inflated dollars and witchcraft like confidence in a system that has been preached repeatedly for 30 years.  The only thing holding us up is that the world still has some confidence in the Dollar.  But Peter thinks that that is about to end, and that will devastate our system.

So start investing in other countries currencies.  He has been right so many times and on so many subjects that I say what the hell do you have to lose?  I have found an automatic Forex Trading Program that is returning excellent results and you should take a look at it also.  Peter says the dollar is going to collapse so if you start investing in currencies now you can than be rich in Euro’s or Swiss Francs, which will make you extremely rich (compared to your neighbors) in Dollars.

Go check this out and get started in sustaining your lifestyle before its too late: